Legislative Update, April 26, 2005

Vol. 22 April 26, 2005 No. 16

CONTENTS

HOUSE WEEK IN REVIEW……………………………….02

HOUSE COMMITTEE ACTION…………………………08

BILLS INTRODUCED IN THE HOUSE THIS WEEK……. 30

NOTE: Bill summaries included in this document are prepared by the staff of the South Carolina House of Representatives and are not the expression of the legislation’s sponsor(s) or the House of Representatives. The summaries are strictly for the internal use and benefit of members of the House of Representatives and are not to be construed by a court of law as an expression of legislative intent.

HOUSE WEEK IN REVIEW

The House of Representatives amended and approved H.3647, a bill ELIMINATING SUNDAY BLUE LAW RESTRICTIONS. The bill eliminates throughout the state Blue Law provisions which restrict the sale of certain items and prohibit certain work and other activities on Sundays. The legislation provides that an employee of a business that operates on Sunday has the option of refusing to work until 1:30 p.m. on Sunday if he is conscientiously opposed to Sunday work. This conscientious objector provision does not apply to employees, including support, maintenance, repair, and other service personnel, of a manufacturing establishment or a research and development operation that by its nature or for economic reasons involves processes requiring continuous and uninterrupted operation. The legislation makes no changes to provisions that prohibit or otherwise regulate the sale of alcoholic liquors, beer, or wine on Sunday.

The House approved S.320, a bill concerning UNIVERSITY OF SOUTH CAROLINA ATHLETIC FACILITIES REVENUE BONDS, and enrolled the legislation for ratification. The bill raises from forty million dollars to sixty million dollars, the outstanding debt limit for University of South Carolina athletic facilities revenue bonds.

The House approved S.483, the “SOUTH CAROLINA STATE UNIVERSITY ACADEMIC AND ADMINISTRATIVE FACILITIES BOND ACT”, and enrolled the bill for ratification. This bill authorizes (subject to approval of the Joint Bond Review Committee and the State Budget and Control Board) and prescribes the manner in which, and conditions under which, South Carolina State University may issue certain revenue bonds to finance or refinance all or part of the cost of acquisition, construction, renovation, and improvement of land, buildings, and other improvements to real property and equipment for the purpose of providing certain academic and administrative buildings.

The House amended, approved, and sent to the Senate H.3039. This bill provides that FAMILY COURT AND PROBATE COURT HAVE CONCURRENT JURISDICTION TO HEAR AND DETERMINE MATTERS RELATING TO PATERNITY, COMMON-LAW MARRIAGE, AND INTERPRETATION OF MARITAL AGREEMENTS. However, the bill further provides that the concurrent jurisdiction of the probate court extends only to matters dealing with the estate, trust, and guardianship and conservatorship actions before the probate court.

The House amended, approved, and sent to the Senate H.3243, the “YOUTH ACCESS TO TOBACCO PREVENTION ACT OF 2005”. Under this bill, it is unlawful for a person to sell, furnish, give, distribute, purchase for, or provide a minor under the age of 18 a tobacco product. The bill also provides that it is unlawful to sell a tobacco product to an individual who does not present upon demand proper proof of age. Proof of age is not required from an individual who the person reasonably believes to be over 27 years of age. The bill further provides that a retail distributor of tobacco products must provide training to its employees about selling tobacco related products. Any retail establishment that does not provide training is subject to a fine of not more than $1,000 dollars.

The bill makes it unlawful for a person under 18 to possess a tobacco product. Exceptions are made for people under 18 who make certain deliveries.

Violations are misdemeanors triable exclusively in either municipal or magistrate court. For a first offense, the penalty is a fine of not less than $100 dollars. For a second offense, which occurs within three years of the first offense, the penalty is a fine of not less than $200 dollars. For third and subsequent offenses, which occur within three years of the first offense, the penalty is a fine of not less than $300 dollars. In lieu of these penalties, the court may require an individual who is less than 18 who illegally purchases or possesses a tobacco product to perform not less than 24 hours of community service for the first offense and not less than 40 hours of community service for a second or subsequent offense. A person who is less than 18 may have his or her record expunged upon becoming 18 if the person has paid the fine imposed and successfully completed any court-ordered community service. A violation of the provisions of this bill does not violate an establishment’s beer and wine permit and is not a ground for revocation or suspension of a beer and wine permit. Also, a conviction does not affect a person’s eligibility for a LIFE Scholarship or any other state sponsored scholarship program.

The House approved and sent to the Senate H.3846, a joint resolution PROPOSING FOUR CONSTITUTIONAL AMENDMENTS REGARDING THE GENERAL FUND AND THE CAPITAL RESERVE FUND. This resolution requires a referendum with four separate questions to determine whether the South Carolina Constitution should be amended so as to:

  1. Provide that the State’s General Reserve Fund shall consist not only of three percent of the General Fund Revenue of the latest completed fiscal year, but also the first ten percent of any surplus general fund revenues accruing for any fiscal year;
  2. Provide that appropriations from the Capital Reserve Fund take effect on September first of the following fiscal year;
  3. Provide that surplus General Fund Revenues for any fiscal year not otherwise obligated and appropriations to the Capital Reserve Fund are deemed to have occurred and are available for expenditure after September first of the next fiscal year and after the state’s financial books for the previous fiscal year have been closed;
  4. Provide that if the Comptroller General determines upon the closing of the state’s financial books for a fiscal year that the State has a negative Generally Accepted Accounting Principles Fund balance (GAAP Fund Deficit), any appropriations contained in a general or supplemental appropriations act which expends surplus general fund revenues or in a Capital Reserve Fund appropriations act to be effective during the next fiscal year are suspended and must be used to the extent necessary to offset the GAAP Fund deficit in the manner the General Assembly shall provide.

The House amended, approved, and sent to the Senate H.3794, a bill that MAKES CHANGES TO THE SOUTH CAROLINA RESEARCH AUTHORITY (SCRA), including but not limited to the following:

  • Creates two divisions within the SCRA - the South Carolina Research Division (SCRD) and the South Carolina Research Innovation Centers (SCRIC);
  • Revises the composition of the SCRA board, including:
  • Deleting the Chair of the State Development Board and the Chair of the Technical Advisory Board of the SCRA as ex officio members and adding as ex officio members, the Chair of the House Ways and Means Committee, the Chair of the Senate Finance Committee, and the Secretary of Commerce, or their respective designees;
  • Creating an Executive Committee of the board, comprised of the Presidents of Clemson, MUSC, and USC-Columbia, and the Governor or his designee, and the Chairman of the Board of Trustees, and authorizing this Executive Committee to implement recommendations and direct the executive director on policy decisions for day-to-day operations of the SCRA;
  • Requiring the Executive Committee to appoint a business and science advisory board to include representatives from each research university, the venture capital industry, relevant industry leaders, and the Department of Commerce, and charging this advisory board to advise the board when requested;
  • Deletes the Technical Advisory Board of the SCRA, whose current purpose is to advise and assist the board when so requested;
  • Requires and provides for the SCRIC to establish three Research Innovation Centers in South Carolina (one in Charleston associated with MUSC, one in Columbia associated with USC, and one in the Upstate associated with Clemson) to: enhance the research and technology transition capabilities of the three research universities, establish a continuing dialogue forum between the research universities and industry, and promote the development of high tech industries and applied research facilities in South Carolina;
  • Defines “Research Park” as the Clemson Research Park in Anderson County, the Carolina Research Park in Columbia, any park developed at Line Street and Hagood Avenue in downtown Charleston, and any park mutually designated by the SCRA and the participating Research University;
  • Requires that the SCRIC be funded by a direct payment of funds by the SCRA, as delineated in the bill, for at least the first three years of the centers’ existence;
  • Provides that after this three year period, the State shall explore methods to provide additional funding (may include direct appropriation from the General Fund, private donations, or other funds) until the Innovation Centers have a reasonable opportunity to become self-sustaining;
  • Requires that costs associated with the physical space for the centers must be financed through the issuance of general obligation debt or by private match funding, as provided in the bill;
  • Authorizes the SCRIC to:
  • admit qualified companies, as described in the bill, and pre-company initiatives into a center and grant these companies up to two hundred thousand dollars each as well as physical and staff resources;
  • allow these companies to remain in an innovation center for up to four years or until exceeding one million dollars in annual commercial revenue;
  • Allow rent and fees for services initially to be waived;

Requires the SCRIC to use monetary grants for proof-of-concept studies, Small Business Innovation Research program matches, the protection of intellectual property, and other similar uses.

The House approved and sent to the Senate H.3297. This bill PROVIDES AN EXEMPTION FROM SALES TAX FOR PRESCRIPTIONS FOR THE TREATMENT OF RHEUMATOID ARTHRITIS.

The House approved and sent to the Senate H.3580. This bill ALLOWS AN ANNUAL DEDUCTION OF UP TO THREE THOUSAND DOLLARS FROM TAXABLE INCOME OF MEMBERS OF THE STATE GUARD who meet certain requirements delineated in the bill.

The House amended, approved, and sent to the Senate H.3813. This bill establishes and provides for the NATIONAL GUARD RETIREMENT SYSTEM (the System) to provide pension benefits for members of the National Guard of South Carolina who became members of the National Guard of South Carolina before July 1, 1993. Administration and operation of the System are vested in the State Budget and Control Board (the Board), and the Board is charged to engage the actuarial and other services required to transact the business of the System. The bill requires the Actuary to investigate at least once every five years, the mortality, service, and compensation experience of the System participants and make a valuation of the contingent assets and liabilities of the System, and adopt for the System such tables as are necessary, based on this investigation. The Actuary is also required to make a valuation of the contingent assets and liabilities of the System at least every other year. The bill requires that every eligible member of the National Guard of South Carolina who became a member before July 1, 1993, shall receive from the System, commencing at age sixty, a fifty dollar per month pension for twenty years creditable service with an additional five dollars per month for each additional year of creditable service, with the total pension not to exceed one hundred dollars per month. To receive the pension, each member must have served and qualified for at least twenty years creditable military service, as provided in the bill; must have at least fifteen years of this service as a member of the South Carolina National Guard with the final or last ten years of service before retirement in the National Guard of South Carolina; must have received an honorable discharge from the National Guard of South Carolina. The bill prohibits payment of any benefit to beneficiaries upon the member’s death. Also, individuals receiving retired pay or physical or disability retirement from any of the regular components of the United States Armed Forces are not eligible for benefits under this System. Benefits under this System are exempt from South Carolina income tax.

The House amended, approved, and sent to the Senate H.3799, a joint resolution that authorizes and provides for state agencies to establish a SPECIAL ACCOUNT FOR THE PURPOSE OF FUNDING NONRECURRING IMPLEMENTATION EXPENSES OF THE SOUTH CAROLINA ENTERPRISE INFORMATION SYSTEM (SCEIS). The SCEIS is a single enterprise information system to be used by state agencies, commissions, and boards that process their respective financial and payroll information through the Comptroller General’s legacy applications today. The principal objectives are to reduce administrative costs; improve accuracy, timeliness and security of financial transactions and information; and improve services provided to South Carolina citizens and businesses. The joint resolution also expresses the General Assembly’s intent that agencies pursue grants and other nonstate funding sources to fund their portion of the SCEIS implementation.

The House approved and sent to the Senate H.3490, a bill pertaining to INCIDENTAL CHECKCASHING BY RETAIL BUSINESSES. This bill revises the exemption from checkcashing service licensure requirements that is provided for a person who, incidentally to or independently of the operation of a bona fide retail business, from time to time cashes a check, draft, or money order, so as to provide that a fee may be charged for such an incidental service so long as it does not exceed the statutory fee schedule.

The House approved and sent to the Senate H.3741. This bill provides MEDICAL SCHOOL DEBT FORGIVENESS FOR DOCTORS WHO SPECIALIZE IN GERIATRIC MEDICINE. The bill establishes a state loan repayment program within the Division of Aging. The program will reimburse student loan payments for up to four physicians at a time who are licensed in South Carolina and are trained in geriatrics. In order to be eligible, a physician will have to enter into a contract with the Division of Aging to practice in the State for at least five consecutive years, accept Medicare and Medicaid patients, accept insurance assignment rates, and not discriminate against patients based on the ability to pay. The program will reimburse student loan payments for these physicians of up to $35,000 per year times the number of years the physician completed in a geriatric fellowship. H.3741 establishes a Physician Advisory Board to review applicants and recommend physicians for the program. The board will be appointed by the Division of Aging and composed of representatives of: the South Carolina Medical Association; the South Carolina Commission of Higher Education; the Medical University of South Carolina; the USC School of Medicine; and a fellow in geriatrics or geropsychiatry. Board members will serve at the pleasure of the Division and without compensation except for mileage, subsistence and per diem. The board is directed to consider demonstrable need and try to select candidates who will continue to practice in the State after completing the program contract. Applicants will be prioritized as follows:

  1. South Carolina natives completing fellowship programs in South Carolina;
  2. Out-of-state applicants completing fellowship programs in South Carolina;
  3. South Carolina natives completing out-of-state fellowship programs;
  4. Out-of-state applicants completing out-of-state fellowship programs.

If a physician in the program is found to be out of compliance with the terms of his or her contract, the Advisory Board is to recommend a penalty. The amount of the penalty is not to exceed three times the total reimbursement received plus interest at the prime rate plus ten percent.

The House amended, approved, and sent to the Senate H.3467. This bill authorizes the DEPARTMENT OF SOCIAL SERVICES (DSS) TO IMPOSE FINES WHEN THERE IS A VIOLATION OF STATUTE OR REGULATION PERTAINING TO A PROGRAM DSS REGULATES. DSS regulates programs for childcare, residential group homes, foster homes and adoption/placement agencies. Currently, the only action DSS can take when one of these facilities is in violation is to issue a warning or to suspend, revoke or deny a license or registration. Foster homes would be exempt from civil fines imposed by DSS. H.3467 requires DSS to promulgate regulations that will cover conditions under which a fine will be assessed as well as a schedule of fine ranges that take into account the severity and frequency of violations. The regulations must include the right to a contested case hearing by DSS and an opportunity for judicial review of the agency’s decisions. H.3467provides that licenses for residential group homes, childcare facilities, and adoption/placement agencies will be good for two years. Fire inspections will continue to be required on an annual basis for residential group homes and child care facilities.